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income tax act 24b

THAMBIAPILLAI RAJAN (9 Points)

07 July 2018

i want to know the act 24 b regards commercial property rebate as i want to show the act to my employer

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195643 Points)
Replied 07 July 2018

Meaning of House Property:-

House property consists of any building or land appurtenant thereto of which the assessee is the owner. The appurtenant lands may be in the form of a courtyard or compound forming part of the building. But such land is to be distinguished from an open plot of land, which is not charged under this head but under the head 'Income from Other sources' or 'BusinessIncome', as the case may be. Besides, 'houseproperty' includes flats, shops, office space, factory sheds, agricultural land and farm houses. Further, house property includes all type of house properties, i.e., residential houses, godowns, cinema building, workshop building, hotel building, etc.

Essential conditions for taxing income under this head Income from house property is taxable in the hands of its legal owner

in whose name the property stands. „Owner‟ for this purpose means a person who can exercise the rights of the owner not on behalf of the owner but in his own right. A person entitled to receive income from a property in his own right is to be treated

as its owner, even if no registered document is executed in his name.

The following three conditions must be satisfied before the income of the property can be taxed under the head“Income from House Property”:

·The property must consist of buildings and lands appurtenant thereto;

·The assessee must be the owner of such house property;

·The property may be used for any purpose, but it should not be used by the owner for the purpose of any business or profession carried on by him, the profit of which is chargeable to tax. If the property is used for own business or profession, it shall not be chargeable to tax. Ownership includes both free-hold and lease-hold rights and also includes deemed ownership.

Refer:: Income-from-House-Property-